Launching a small business can seem overwhelming, especially as a solo entrepreneur. Whether you’re a business expert or are starting your own company for the first time, there are some crucial steps to take to begin your business on the right foot. Here, we cover the key touchstones for all small businesses, and a few important notes to ensure starting your small business goes smoothly.

Topics at a Glance

• Getting Started
  • Conduct Market Research
  • Pick a Location
  • Choose a Name
• Laying the Foundation
  • Build a Business Plan
  • Pick a Business Structure
  • Fund Your Business
• Paperwork
  • Register Business
  • Get Tax IDs
  • Open a Business Bank Account
  • Apply for Licenses and Permits
• Online Identity

Getting Started

Every business starts somewhere. Before you commit to filing paperwork or creating an LLC, there are some crucial touchstones to remember when starting your small business. Whether you’re jumping into the world of publishing, running a small company out of your home, or looking to tackle any number of industries, all small businesses should start by following these crucial steps. 

Conduct Market Research

If you have even an inkling of the business you’re looking to start, you’ve probably done some preliminary market research. Market research allows you to scope out your niche, identify competition, and determine what needs your business can solve. If you don’t do market research, you could flounder when it comes time to advertise your business. 

Track trends over time, and note what the big players in your industry do right and what you think you could do better. Taking the time to analyze your industry and business niche can set your small business on the path to success and minimize frustrations. 

Pick a Location

As they say in real estate, “location, location, location.” However, today, there’s more to your business’s location than your brick-and-mortar store (though choosing a spot for that is important). Take the time to research your company’s online location, including social media tags, website URLs, and more. 

While choosing a URL blends well with our next step (Choose a Name), it can be a building block for your company. You may find your company name by searching for a URL. 

Of course, choosing a physical location for your small business is also crucial. Whether operating out of your home or looking to purchase real estate, ensure your business starts in an advantageous location. The market research you did early should inform you about local competition, allowing you to choose the best spot for your company’s founding. 

Choose a Name

What’s in a name? While Juliet is a little laissez-faire about the importance of a name in Shakespeare’s famous play, a small business founder needs to put a decent amount of thought into their company name. Your company’s name is part of its identity and should illustrate what you do and act as a branding device across the board. 

Remember, changing your company’s name down the road is a complicated (and costly) thing to do, so make sure to take the time to pick a name that sticks with you and summarizes everything you want for your company. 

Laying the Foundation

Now that you have the building blocks all setup, it’s time to lay out the foundation of your small business. Laying a great foundation for your small company can lead to success in the future and give you something solid to fall back on with the rise and fall of market trends. This is the planning stage, and everything you do here will influence your company’s future, for better or for worse. 

Build a Business Plan

If everything we’ve discussed before acts like the building blocks of your business, your business plan is like the architectural blueprint for building your company. This plan should cover how to structure, run, and grow your business. 

A business plan not only acts as a roadmap but also as a tool to convince people to invest in your company. When writing out your business plan, you want to be detailed, ambitious, realistic, and knowledgeable about your niche. 

While you can always adapt your plan later to meet your company’s needs, starting with a solid plan gives you a great jumping-off point for future business decisions. 

Pick a Business Structure

While choosing a legal business structure is a form of paperwork, it acts as part of the foundational planning stage of your business. What kind of company are you running from a legal perspective, and how does that change how your company grows and changes? 

Covering everything you need to know about business structure is outside this article’s scope. However, the Small Business Association (SBA) has a helpful article covering the general differences between business structures to get you started. 

Fund Your Business

Now that you have a business plan, you know better what to pay for to get your business off the ground. While you may be able to fund your business out of pocket, you’ll likely need to find a funding source to get your business started. Whether you attempt to raise the capital you need to start your company or take out a loan, there are plenty of ways to raise the money you need to get your company off the ground. 

Since acquiring business funding is a complex topic, we once again direct you to the SBA article to better understand the different kinds of financing. Remember, talking with a financial advisor before taking out any loan or financing is always a good idea. 

Paperwork

You’ve laid the groundwork, crafted your business plan, and found the funding to start your small business. Now it’s time for the part of starting a business that every entrepreneur fears: paperwork. Once you have a general idea of the paperwork needed, starting your business is rather straightforward. 

Register Business

Registering your business makes it legal, protects your brand identity, and helps you keep track of things on a financial level. Depending on where you live, you’ll need to register your business on a federal business level and a state government level, though the rules vary depending on where you live. If applicable to your business, you’ll also want to file all paperwork related to being an LLC.

Because there’s a lot of paperwork related to registering your business, you may want to work with a tax expert or experienced filing professional to organize and file your paperwork correctly. 

Get Tax IDs

Getting an employer identification number (EIN) for your business is crucial. This allows you to open a business bank account and pay taxes and is an essential part of running a business. Remember that some states require you to get a separate tax ID from that state, so pay attention to your local laws and business guidelines. 

Open a Business Bank Account

A successful business earns money, and you need to store that money somewhere. While you may be tempted to use your bank account for business funds, mingling business and personal finances is unwise. Instead, ensure your business has a separate bank account. This makes paying bills and salaries and keeping track of earnings much easier and sets you up for success come tax season. 

Apply for Licenses and Permits

The last thing you want for your business is for it to get into legal trouble. You may need specific permits, licenses, and more, depending on your industry. It’s important to stay up-to-date on these licenses and follow the guidelines and requirements for every state, location, and industry your business operates in. These rules vary depending on your location, so research for your unique circumstance to set your business on the right path. 

Online Identity

Now that you have the basics for your business, it’s time to set yourself up for digital success. Creating a social media presence, a website, and any e-commerce page your company needs can be a great way to introduce your business to the world. Keep your company name and information consistent across your socials, and plan out your social media marketing strategies from the start to get your business noticed. 

If you’re looking for more help setting up your business’s social media accounts, we can help. At Planted Marketing, we work with small- and mid-sized business owners to grow their social media accounts. To schedule a consultation with our team, contact us today!